Form 656

Form 656

A form one files with the IRS to request an offer in compromise, which is a program whereby a person or company owing delinquent taxes asks to settle the debt for less than the full amount owed. In order to file Form 656, the taxpayer must state that he/she will never be able to pay his/her taxes in full or show that there are other circumstances, such as age or disability, that will hinder payment. See also: Form 433.
References in periodicals archive ?
The acceptance of this requires Form 656 with a tremendous amount of backup information.
You'll find instructions and the forms for submitting an offer in IRS Form 656 Booklet: Offer in Compromise.
The SO informed Szekely that he was required to complete a Form 656, Offer in Compromise, and another Form 433-A--this time, Form 433-A (OIC)--before she could consider a collection alternative.
Form 656, Offer in Compromise, and Form 656-B, Offer in Compromise Booklet, have been revised to reflect these changes.
You can make an offer in compromise using Form 656, which like an installment agreement will require that you pay a fee ($150) for the privilege.
The IRS has released a revised Offer in Compromise Form 656 package, adding significant changes as a result of the 2005 Tax Act, including:
With this week's publication of revised tax Form 656 and an array of internal IRS changes underway, the agency is fundamentally changing the Offer in Compromise program.
A taxpayer can request consideration for an OIC by filling out Form 656, Offer in Compromise, or Form 656L, Offer in Compromise (Doubt as to Liability) and submit it with their tax forms.
The taxpayer must submit Form 656, Offer in Compromise, Form 433-A, and, if necessary, Form 433-B.
If the facts warrant, practitioners should consider including both ETA and DATC as justifications on the same Form 656, Offer in Compromise.
Taxpayers should be prepared to bare their financial souls when they apply for an offer in compromise on Form 656 and truly make a serious offer.
An offer to compromise a tax liability must be submitted in writing on Form 656, Offer in Compromise.